Oil prices moderated on Friday, but stayed elevated near the key $100 a barrel level, as concerns over supply disruptions stemming from the U.S.-Israel war outweighed U.S. plans to permit purchasing of some sanctioned Russian crude.
Brent oil futures for May fell 0.3% to $100.17 a barrel by 06:44 ET (10:44 GMT), while West Texas Intermediate crude futures dropped 0.9% to $94.92 a barrel. But Brent remained on track for a second week of strong gains as the Iran war -- and its impact on global oil flows -- showed few signs of abating.
Brent crude prices initially fell as much as 1% after the U.S. Treasury Department said it will allow the purchase of Russian oil already at sea to help offset supply shocks from the fighting in the Middle East.
Treasury Secretary Scott Bessent said the move was aimed at helping stabilize energy markets amid supply shocks stemming from the war with Iran. The U.S. had earlier this week issued some waivers for Russian oil purchases, with world no.3 importer India being allowed to ship crude from Moscow.
Bessent noted as well that the U.S. is planning on the Navy providing an escort for commercial vessels traversing the Strait of Hormuz, the narrow waterway south of Iran through which a fifth of the world’s oil passes.
The threat of Iranian attacks has effectively halted shipping in the strait. As a result, fears have abounded of an energy-induced inflation shock that could lead to a more hawkish stance for central banks around the world.
